Warren Buffett’s Berkshire Hathaway has sold $8 billion worth of stock in the most recent quarter. Because of this, I have seen a ton of articles saying that this “raises fears of a crash”. Many “experts” have put out content talking about what this means or why he did it, but does it really matter at all?
While $8 billion is a lot of money, it is important to realize that that is a very miniscule amount of money for Berkshire Hathaway. As of last year, Berkshire Hathaway had $948.4 billion in assets. $8 billion is not going to make or break a portfolio like that.
I would imagine that Warren Buffett sold $8 billion worth of stock to help diversify the portfolio by trimming down a position. Either way, it doesn’t matter. If Buffett does think that the market is going to crash, selling $8 billion worth of stock isn’t really going to help him at all.
The market is very much in the green so far year-to-date meaning that a lot of people are once again trying to predict a crash. Of course, no one actually knows what the market is going to do short-term. Either way, Buffett selling a tiny fraction of his portfolio is not a clue.
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Finance by CWT 